Working capital loan sanctions doubled in 2 days: Sitharaman

New Delhi, May 9 (IANS) A day after suggesting that Indian economy is “poised to recover” as indicated by high levels of loan sanctions by banks over last two months, Finance Minister Nirmala Sitharaman on Saturday pointed out that banks are leaving no stone unturned to ensure that the current coronavirus situation does not result in liquidity crisis for businesses.

In a tweet by Nirmala Sitharaman’s office, it said that almost all eligible borrowers for emergency credit lines and working capital have been contacted by banks and sanctions have picked up pace in last couple of days.

“PSBs contacted more than 95% of borrowers eligible for emergency credit lines & working capital enhancements between March 20 – May 6. The amount sanctioned jumped to Rs 54,544 crore, more than double the amount 2 days ago. Number of cases covered more than tripled,” Sitharaman’s office tweeted.

On Friday, the Finance Minister’s office had tweeted that state-run banks have sanctioned loans worth Rs 5.66 lakh crore over last two months to about 4.2 million account holders belonging to micro, small and medium enterprises (MSMEs), retail, agriculture and corporate sectors, indicating that Indian economy is on its path to recovery.

Government is ensuring that present coronavirus pandemic is prevented from making a serious dent on the Indian economy. It wants that investments should not be stopped and banks should ensure that all eligible borrowers get sufficient funds.

Sitharaman’s office tweet on Friday had raised a few voices whether sanctions would ultimately result in disbursements as present crisis may prevent ntities from taking loan disbursements.

–IANS

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